01:31 GMT20 September 2020
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    Crisis in Ukraine (116)
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    International Monetary Fund (IMF) reforms that will allow Ukraine to continue borrowing while simultaneously not paying back a loan to a sovereign creditor is a "risky proposition," the Russian envoy to the European Union said.

    MOSCOW (Sputnik) — The United States, as well as other Western states are currently preparing to reform the current IMF lending-into-arrears policy, which would prevent a stoppage of IMF aid to Ukraine if the country defaults on its loan from Russian.

    "This is a risky proposition. It is necessary to change, bend these rules for the sake of Ukraine, as beyond Ukraine a long, long line of countries from different continents requiring the same things will line up," Vladimir Chizhov told Rossiya-24 TV channel.

    According to the IMF arrears policy, countries borrowing from the fund continue to receive loans even if they miss payments to commercial creditors. But if a payment to a sovereign creditor (such as Russia) is missed, the borrower cannot receive additional IMF aid.

    Russia issued a $15-billion loan to Ukraine in December, 2013, having bought $3 billion-worth of Ukraine's Eurobonds. The rest of the loan was canceled following a regime change that took place in Ukraine in February, 2014.

    Russia maintains that Ukraine must repay its debt in full by the end of 2015.

    Topic:
    Crisis in Ukraine (116)

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    International Monetary Fund, Vladimir Chizhov, Ukraine
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